Sterling falls after inflation data, shares rise

LONDON, June 17 (Reuters) - Sterling fell against the dollar
and the euro on Tuesday, while UK shares rose after British
inflation fell more sharply than expected in May, giving the
Bank of England some room to keep interest rates near record
lows.

Sterling dropped to a day's low of $1.6938 after
the data from around $1.6977 beforehand. The pound had risen
past the $1.70 mark for the first time in nearly five years on
Monday on growing expectations that the Bank of England will
tighten policy before the end of the year.

The euro rose 0.1 percent to 80.08 pence from
around 79.86 beforehand.